J.P. Morgan puts chances of AMR bankruptcy at 25%

J.P. Morgan believes the chance that AMR
AMR, -21.55%
will file bankruptcy by the fourth quarter is 25 percent. Mark Streeter, the firm's credit analyst, said the chances are as high as 80 percent under one scenario. He said that while a potential war and its aftermath may significantly affect the airline operator's cash burn rates and its access to additional capital, the likelihood of bankruptcy is "disproportionately driven by labor." The stock closed Wednesday down 9.2 percent at $2.58. Late Wednesday, the airline's pilots union denied a report saying the union thinks the airline will run out of cash within months.

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